Skip to main content

tv   Power Lunch  CNBC  December 3, 2015 1:00pm-3:01pm EST

1:00 pm
here at san bernardino county sheriff's department, san bernardino city police department, and the atf. these resources are being applied for a number of reasons. i'll give you an example of some things we're doing today. we flew in a team to do some -- from washington to do some re-enactment/reconstruction of the crime scene. we have continued collecting evidence and are continuing to collect evidence at the multiple scenes. we are going to fly some evidence back to our laboratory in washington, d.c., today on a plane. that is because we want expeditious analysis of that evidence. as far as the digital media that was asked about earlier, the digital media is incredibly important because we are trying to determine the motive. we do not yet know the motive. we cannot rule anything out at this point and we're hoping that some of that digital media exploitation will help us and assist us in obtaining some of that. again, it would be irresponsible of me and it would be way too early for us to speculate on motive of why this occurred.
1:01 pm
any questions for the fbi? >> have you found any information that says that he did this in the name of religion or that or with all this ammunition as part of a larger group and a larger plot or maybe he was planning a different attack and got ticked off and decided, okay, i'm just going to turn on these guys. >> again, if you look at the amount of obvious preplanning that went in, the amount of armaments that he had, the weapons and the ammunition, there was obviously a mission here. we know that. we do not know why. we don't know if this was a -- the intended target or if there was something that triggered him to do this immediately. we just don't know, and, again, that's going to take time to get to that answer. >> was he in touch with subjects, international subjects, that the fbi or the authorities were interested in overseas by phone or by social media as cnn has reported. >> international subjects, we're
1:02 pm
still working through that. we know there was some international travel. they came into the u.s., both he and his -- she was not his wife at the time but she is now. they both came into the u.s. in july of 2014. they have since had a baby together. he is a u.s. person. she is still here on a k-1 visa. >> do you believe the international travel is connected in any way to this massacre? >> we do not know. it's certainly something we're going to look into very, very carefully. >> -- with investigative southwest terrorism subjects that the fbi had under investigation. >> i did not hear you. >> what can you tell us about any communications he had with terrorism subjects that the fbi had been investigating? >> we're still working through that, and, again, that goes towards the flow and the pace of the information. i want to make sure we're absolutely correct before we put that out. >> -- people in the united states the fbi is investigating. >> we're still working through that.
1:03 pm
[ inaudible question ] >> pardon me? >> how long had he been out of the country and what countries had he visited? >> it appeared he came back into the u.s. in july of 2014, as i said earlier. i do not know all the countries he visited. we know he did go to pakistan at one point. we know she is here on a k-1 visa under a pakistani passport. >> what about a trip to saudi arabia? >> don't have all the facts yet. >> anything about her that would explain why she got involved in this caper? >> we don't know enough. we do not know enough. i'm going to take two more questions. >> any evidence that these ieds -- >> how close are you to making that determination? >> again, it would be irresponsible and premature of me to call this terrorism. the fbi defines terrorism very specifically and that's the big question for us is what is the motivation for this. first and foremost, the integrity of this investigation, again, is paramount. secondly it's ultimately to determine the motive and the inspiration for this attack.
1:04 pm
>> the ieds that were found, how would you describe them? is this professional or amateurish? high grade military explosives used there or -- [ inaudible ]. >> i'm not an expert either. as the chief mentioned earlier, so i don't want to go too deep. i would say there's some level of sophistication certainly when you're tying them together and you have seemingly remote control car that is attached to the device. i'm going to take one more question and turn it back to the chief. >> -- based off any kind of designs with "inspire" magazine. >> i didn't hear you? >> any type of evidence that shows a linkage between the designs of the ieds and "inspire" magazine? >> we knew that question would come up and we are looking into it. >> were they on anybody's radar screen? >> he was not on the radar screen of our agency prior to yesterday. let me go over a couple details. our plan today is, as i said
1:05 pm
early on, we're going to do this press conference now. throughout the course of the day we'll do what we can to release the names of the victims, focus in on those folks. we'll probably try to get you some photos and as i said we'll try to move the media a little closer. we will come back at 4:00 or 5:00, hopefully we'll have significantly more information for you by then. and then we'll kind of play it by ear. so with that i'll take a couple more questions and then i think we're going to cut it off. >> how did you determine he was a suspect? >> so as i said yesterday when we did our early press conferences, there was -- we got a couple of tips, and we were following up on a couple different leads. this was one of the tips that we followed up on very early on. where that came from was another person that was in the building that knew him that identified him by name who expressed some concern over his behavior prior to the event and the way that he left. following up on that information, we discovered that he had rented a vehicle that was
1:06 pm
similar to the suspect description that we had received, and we also followed up on addresses -- we had more than just that address in redlands, but the address in redlands is one we followed up on and the rest is obviously we know how that played out. [ inaudible question ] >> there were things that as our officers approached gave them concern that -- i don't know if the word booby trapped is appropriate, but there was concern that they did not want to go in immediately. they wanted to approach it very, very carefully and very tactically and for that reason we actually used the fbi tactical team for that because we were stretched so thin here, so the fbi came with their bomb folks. i think the sheriff's department may have helped with that component as well and we used their team to do it. the initial officers that were there and security the house were not the ones that made entry. we did wait until tactically they did it appropriately. >> were you able to find any notes or any type of
1:07 pm
information -- >> there's nothing definitive that we have right now that points directly to a motive. i have not been made aware of any notes. >> have all the bodies been removed, identified, and the family notified? >> we are still working on that. it's been a slow process. when this happened, the sprinklers in the room had actually gone off. we believe what happened is maybe one of the rounds that were fired hit the fire sprinklers, set them off, flooded the room. it took a lot of time to get that process turned off and then we discovered the explosive devices in the room. it took a lot of time to do that. we did not get to the portion where we were dealing with the victims and the bodies and trying to make the positive identification through fingerprints until the middle of the night. we've been working throughout the night on that and we have been making notifications since then. what the sheriff plans to do is that slowly throughout the day we will release the names hopefully of all 14 people today as we are able to make notifications. >> anyone still in there? >> i'm not sure.
1:08 pm
i'm not sure to be honest with you. >> to the victims -- >> as of several hours ago there were a few bodies left. we may have been able to remove those victims by now. i'm sorry, brian. go ahead. >> you talked about the delay in getting to the bodies because of the sprinklers, but were you able to go in right away -- >> the initial response, the officers went through the water and all that, identifying bodies, searching for suspects, all that was done. we had confirmed those folks had lost their life, that they were dead and then we discovered the ied which caused the safety personnel to back out and deal with those in an effective way. >> can you tell us what was discussed during the holiday party. did the suspects have any conversation with the holidaygoers? >> not that i have been told. >> did he say anything during the shooting? >> not that i have been told. >> were you able to confirm or find out the list of all the local people here in the san bernardino area that these people may have been in touch with over the last week or two
1:09 pm
weeks prior to -- or are you still reaching out to try to find these people? >> that's part of the broader more complex investigation to see if there are other co-conspirators or people who may have been aware of something. i'm not prepared to give details. >> can you give an update on the detainee? >> at the officer-involved shooting we indicated there was a person that was detained out of that. that person was seen running away from the scene. what we have learned since then is that several of -- there were several police cars and undercover cars that pulled up that were engaged in that officer-involved shooting with the suspects. we found out later on that there were people that were in cars that abandoned their cars and ran the other direction when the gunfire started. i don't know if that person was one of those. we did ultimately determine he was not involved in the incident, he's not a suspect. he did happen to have a misdemeanor warrant. he was booked on that warrant. [ inaudible question ] >> sorry? >> where did you find the ied?
1:10 pm
in the conference room? >> it was in the middle of the room on a table in the bag. >> were you able to ascertain whether it was the suspect or the police who fired first and is it clear to you that these suspects had been intent to die there? >> i don't know if i can speak to their intent on that. it's my understanding they opened fire first. rounds came out of the back of the car from the female that was in the backfiring through the back of the suv at the police vehicles and then the male suspect who was the driver got out and fired at officers from the street as well. i don't know who fired the first round. >> chief, what do we know about -- [ inaudible ]? >> i'm going to let the fbi -- that's a part of the investigation that they're working on and so they're doing up the history on that. i just don't have enough info about her. >> did it stop on its own accord or was it disabled? >> i believe it stopped on its own accord to engage the officers. >> i know you can't talk about county buildings, but city buildings, i know this is
1:11 pm
probably a -- what about security at city buildings? >> we stepped up security all across the city and all across the county yesterday at all of our city and county facilities. schools went into lockdown today. it's my understanding as of today based upon the information that we have no credible threats that a lot of those facilities are returning back to business as usual. >> we won't see people with rifles in front of city hall? >> i don't anticipate you will. >> -- are they -- >> what's that? >> department of environmental health where -- >> i don't know. we'll try to get those answers later on. i'll let the sheriff address that from the county. >> last night the county board of supervisors held a special meeting and decided to make the decision to shut down the nonessential county departments for today and tomorrow. not only to make sure that there weren't any threats that were still potentially developing
1:12 pm
yesterday but out of respect for the family members and fellow employees that were either victims or friends of the victims, and that's the decision the board of supervisors made. so the nonessential county operations have been shut down for today and tomorrow. >> just to clarify, there is no suspects in connection -- [ inaudible ]. >> correct. >> chief, are the suspect's families cooperating? >> we have contacted a number of them. they have been cooperative up to this point. there are one or two we're still looking for. >> were these suspects -- >> i have heard that rumor about the go pros. i asked our staff about it. nobody has located go pros or located evidence they were wearing cameras of any sort. >> chief, do you know how many peep were at the party? >> i don't. we are going to try to get that by later this afternoon though. >> have family members were formally interviewed about what they knew? >> several of the family members have already been contacted,
1:13 pm
have been interviewed, and are cooperating. we're still looking for a couple of others. [ inaudible question ] >> i'm sorry? [ inaudible question ] >> i don't know anything about that. >> the coroner's office is now having to handle 14 bodies at once. what impact is this having on the coroner's operations? >> as you know, i'm possible for the coroner's office as well, and our staff is on 12-hour shifts and we've called folks in from their days off to assist with processing the scene and helping to identify the victims of this tragic event. we're in the process of making those identifications. the majority of them have been done, and a number of the notifications have been made and we'll continue to update you as we get that information and we can provide the names once the notifications of the next of kin have been made. >> will that be on the website? >> we'll probably release it through a press release through our public affairs division as
1:14 pm
we get that information. >> two more questions and we're going to wrap it up. >> does the wife have relatives in the united states? >> not that i have been told. >> what country is she from? >> pakistan. thank you very much, folks. we'll be in touch throughout the day. >> welcome, everybody, to "power lunch" along with mandy drury, i'm tyler mathisen. a wide-ranging press conference there conducted by jarrod burguan, the chief of police of san bernardino and assistant director bowdich of the fbi indicating some digital media had been recovering from that house where the police made entry last night and that that digital media, as i understand it, is on its way back to washington, d.c., for analysis. more clues may come out of that. let's check in with jane wells who joins us live from san bernardino. >> reporter: well, still plenty of questions, tyler. no motive known. they're very careful about the way they are approaching whether or not this may have been an act of terrorism.
1:15 pm
they still may have a few of the 14 victims left on the site. it's not quit clear. it was a very difficult night with sprinklers going down and then this improvised explosive device they had to neutralize before they could start removing bodies, but the identification process has grown. to summarize, 14 dead, 21 injured, it had been 17. that's up to 21. when the first event happened, 300 officers from several agencies responded. according to police, the two shooters, husband and wife, shot 65 to 75 rounds from their rifles at the scene. they also left three pipe bombs connected together to be operated by sort of a remote control car. that failed. however, they did leave behind four high capacity rifle magazines. they were dressed in black tile tactical gear. they did not have on bulletproof vests but vests that would hold ammunition and they had a lot of
1:16 pm
that ammunition. at the scene where they encountered the two shooters at the suv, seven agencies responded, 23 officers fired at them. they fired 380 rounds at the two suspects killing them. two officers were wounded but they will be okay. what the police chief is saying is it appears the woman, tashfeen malik, may have shot first out of the black suv and then her husband syed farooqk gt out of the driver's side. and in the car on or near them 1400 plus rounds of .223 rounds of ammunition. 200-plus rounds of 9 millimeter. then they went to the house in redlands and in that house where these two people were on the lease, they found 12 pipe bomb-type devices, hundreds of tools with which to create ieds or other pipe bombs, thousands of rounds of ammunition.
1:17 pm
they confiscated all kinds of equipment from there. we're talking about computers, hard drives, as well as from his workplace. he was a county employee. it was his co-workers who were having a holiday party yesterday that he went to. he may have left anywhere from 10 to 30 minutes before returning. the police chief isn't quite sure and he hopes to get that information for us. he is confident the two shooters are dead. that does not mean that there aren't other people of interest they want to talk to who may have known about this. no information that the suspects were wearing cameras. also, again, still no motive. they are starting to release the names of the victims today. he said san bernardino has been really beaten up. it's gone through bankruptcy. it's had all kinds of issues, but he says the community is resilient, and then we heard briefly from the head of the fbi who again would not say -- the los angeles office of the fbi, who wasn't saying very much. he said it could be terrorism, he just doesn't know. they are going to fly back --
1:18 pm
they are flying back some evidence back to d.c. today to be tested in labs. he wouldn't say what kind of evidence. they are bringing in a team to do a re-enactment and a reskon strux of the crime. quote, they were obviously on a mission. we do not know yet if this was the intended target. he had done some international travel. he returned from a trip in july of 2014. they know he went to several countries including pakistan. he brought who became his wife, she wasn't his wife when she came here but she came back with him. there was some level of sophistication they're saying but these two people were not on their radar. they had just rented the vehicle, that ford suv, and it was supposed to be returned yesterday. that's why it had utah plates. the third person they took into custody temporarily yesterday, he was seen running, they do not believe he had anything-to-do with the shooting but he had a misdemeanor outstanding warrant so he's been arrested. i think i got it all there, tyler. if there's anything i skipped -- >> well, jane, thank you for all
1:19 pm
the details so far live from san bernardino. of course, as you said, jane, still a number of key answers that we require and hopefully those answers will appear over the course of time. thank you very much for that, jane. >> we're going to take a quick break and we'll be back with "power lunch" after this. hi watson.
1:20 pm
1:21 pm
welcome back to "power lunch." i'm meg ferrell. i'm joined by sir andrew woody. thank you for joining us. >> pleasure. >> big topic is drug pricing and
1:22 pm
we just heard from a guest, the ceo of turn pharmaceuticals, that he has a fiduciary responsibility to his shareholders to maximize profitability and that's why he did that. how do you think about maximi maximizing profitability and drug prices? why not just raise all your drug prices by that much. >> what we do at gsk is try to strike a balance. my company is 300 years old this year. the reason why we've lasted 300 years, are he mand one of the world's biggest companies is because we take a long-term view on things. our business mod sel a very successful one. we take high risk innovation. our shareholders back that. if we're successful we charge decent prices during a period of exclusivity. that's when we need to recover our cost. once that patent is gone, the generic market should bring those prices down to the lowest level possible and then society gets the benefit of that
1:23 pm
innovation for perpetuity. that works for the whole system. i think it's very dangerous when individual players in a system essentially try to freeload on that system because ultimately it's going to break the whole system. we have a very different view. we think what we have and the way we operate it works very, very well and that's why we've seen so much innovation deliv delivered in health care. >> i want to ask you about paying for cures. you have a gene therapy which could be curative for a very rare genetic disease. how do you think about pricing that if it's a one-time treatment that cures a disease? >> so we're super excited about the work we've got going on in terms of being able to gene edit. this is being able to create fundamental potential cures, hopefully cures, it's impossible to know before you go for a much longer time, those will be transformational treatments. right now our lead program is in a population of children who suffer. in europe there are only about 20 or 30 children in all of
1:24 pm
europe who suffer from this and we filed with the regulate nertion europe for this drug. we are working and we're going to work with authorities to come up with completely new and innovative ways of how we figure out how to pay for this. this may involve things like drug mortgages. it may involve amore advertising the cost of this over a long period of time. we're not going to let price get in the way of making sure that these medicines get to the people who need it. these children have really got profoundly challenging diseases. our scientists have worked now for many, many years with partners to get to this extraordinary moment, and if we are successful, then we have to solve this so that the patients, number one, get looked after as best as possible and, of course, that the shareholders get rewarded for the risk they've taken but they have to be in balance. >> i'm hearing we have some breaking news so thank you so much. going to send it over to sue. >> thank you very much, meg. and we have this news that we can report to you from nbc's pete williams and richard esposito. it appears that the suspect in the san bernardino shooting
1:25 pm
farooque fappears to have been radicalized. he had been in touch with people who had expressed jihadist views. he appeared to have been radicalized. how or to what degree is unclear. authorities say he had been in touch with persons of interest in the l.a. area who had expressed jihadi isist oriented views. the investigation is ongoing but that's the latest we have from nbc's pete williams. we'll be back with just a little bit more on "power lunch" in just a moment.
1:26 pm
at ally bank no branches equals great rates. it's a fact. kind of like mute buttons equal danger. ...that sound good? not being on this phone call sounds good. it's not muted. was that you jason? it was geoffrey! it was jason. it could've been brenda.
1:27 pm
on his little boat any harder if he tried. he's beached here, gazing out on an unforgiving landscape. for while the people who come in here use quilted northern, a toilet paper that works so well they completely forget their experience... daddy gator sees all and forgets nothing. "i've got to motor out of here," he thinks. "this is no place to raise a child." quilted northern. designed to be forgotten.
1:28 pm
welcome back to "power lunch." i'm mandy drury. stocks taking a leg down although we are off the lows of the day. in fact, the dow is down by 114 points. as i mentioned, off session lows. energy and health care are the biggest laggards. consumer staples holding up but all in all a very volatile day with the dow losing its gains at the beginning of trade. bob pisani joins us from the nyse floor. what do you attribute the leg down? disappointment over draghi or nervousness creeping in as we get more details, chilling details, about the shooting in san bernardino? >> the terrorism is really hard to parse on its impact on the markets. certainly there's psychological effects but i think the story
1:29 pm
really is today we should have had a leg up in the commodity names because of the weak dollar, the strong you are euro due to draghi's comments and that's not materializing. i want to comment on that. something strange is happening. i just put up the energy complex. oil has had a very nice rally today. it had a rally in the early part of the day and it had a rally just about an hour ago. we moved a second leg up. 4%, that's a nice move up. the xle, these are energy stocks, they're down today. this is very unusual to see energy down and it was down a lot more earlier in the day with the oil market up and the equity market seems to be seeing we do not believe that this rise in oil today is going to be permanent in any way. look at some of these big names. these are two 52-week lows, southwest, cabot, chesapeake, kinder morgan. most of the complexes down 2%, 3% with oil up. they don't believe the rise in oil is going to be permanent. we have new lows in some of the big industrial names.
1:30 pm
we've been talking about the weakness in the railroads. cummins and paccar. utilities, a whole bunch of them at new lows. bond yields moving up aggressively today. that's usually a bad sign. some of them turned positive but earlier in the day all of the utilities were sitting right near 52-week lows, and finally the market has got a very defensive tone to it. there's only a tiny group of stocks at new highs and they're all defensive names. your krogers, costco, tyson foods, hormels, and your collor. we've had a nice move up in oil in the last hour or so and the important thing is that is going to move the markets in the afternoon. more "power lunch" coming up right after the break.
1:31 pm
1:32 pm
1:33 pm
hello once again, every. i'm sue herera. here is your cnbc news update this hour. president obama speaking on the san bernardino shootings says that the fbi is now taking over the investigation. he says investigators still don't know why two suspects killed 14 people and injured more than 17, but that terrorism
1:34 pm
cannot be ruled out. defense secretary ashton carter announcing that the pentagon will open all combat roles in the military to women. only the marine corps requested some exemptions. carter saying he overruled the marines because the military should operate and you common set of standards. and belgian police arresting two new terror suspects in connections with last month's paris attacks. belgian tv says one suspect is a 20-year-old frenchman who was staying in belbelgium. he was arrested at brussels airport. the second suspect was arrested during house raids. british planes have returned from launching air strikes in syria. two jets returned to a british air base in cypress. it comes hours after the british parliament voted late yesterday to authorize the attacks. that is the cnbc news update this hour. ty, back to you. >> sue, thank you very much. stocks under pressure at this hour and nowhere more so than over at nasdaq. down about 1%. let's get to kate rogers at nasdaq for a look at how the
1:35 pm
trading is going there. hi, kate. >> hi, tyler. nasdaq definitely under pressure today. the composite down around 1%. some of the biggest losers here today, wynn after macao gaming figures saw a 32% drop in december compared to a year ago. the ibb index down 3%. biotech names from iliad to amgam again all in the red. apple also in the red. according to a new report they are predicting worldwide tablet sales will fall to the 8%. the biggest winner avago due to a 38% jump in sales for its enterprise storage business reporting in its earnings report yesterday. back over to you. >> thank you very much for the report. it is a tale of two central banks, one going the other way, one going this way. senior economics reporter steve
1:36 pm
liesman is leer here to explain. maybe mario draghi didn't go as much this way as people were expecting. >> top central bankers making crystal clear they're on divergent monetary policy courses because they oversee two very different economies. give a listen. >> the economic recovery in the area continues to be dampened by subdued growth prospects in emerging markets and moderate global trade. the necessary balance sheet adjustments in a number of sectors and by the sluggish pace of implementation of structural reforms. >> i anticipate continued econic growth at a moderate pace that will be sufficient to generate additional increases in employment and a rise in inflation to our 2% objective. when we put it all together, we're still seeing an overall picture of slightly above trend
1:37 pm
growth, ongoing improvements in the labor market. >> the upshot of yellen's comments is that the federal market committee has considered a lot of weaknesses out there, a lot of risk to the economy, but still she left the impression the economy was strong enough to withstand a rate hike. draghi makes impressive moves but not enough for the market. here is what they were. he extended asset purchase by six months. that's another 240 billion euros but maintained the monthly purchase rate. he cut the deposit rate 10 basis points. reinvested principal payments on securities. that was new, not expected, and he expand theed the purchase to include state and local debt. the bundesbank president saying he voted against it's measures because he didn't see a need f stimulus. that confirmed draghi faced a tough committee and went as far as he could. >> was it maybe just opposition or was there maybe the feeling he wanted to leave some extra
1:38 pm
tools in the box? >> that's one thing that's possible. it's worth talking about the effect of the fed. draghi not going quite so far, you get appreciation of the euro. that makes it easier for yellen to hike in december. >> let's talk about the most recent news out of the california investigation, that being nbc news reporting that one of the shooters at least had been, quote, radicalized, at least based on some connections that he had in the islamic community in california. do you think that as this investigation turns, tilts more towards the idea of domestic terror, there could be a broader economic impact lasting? >> i think there's certainly one in the markets and it has the potential knock on effect to the economy. yellen was asked about that today. she said there's a potential terrorist premium out there, she hasn't seen it yet. let's talk about the character of what we're saying. talk perfectly callously, there's a number numbness we have in this country to domestic mass shootings that we've seen
1:39 pm
before. if this seems to have an international content, it changes the story, and when we abst heard the press conference t the amount of ammunition that was there, amount of pipe bombs, and then you have president obama earlier today saying terrorism could not be ruled out, i can guarantee you the market is paying attention to that to see if the character of this is changing from one that's more international from domestic focus. >> and this individual's home apparently a bomb factory, 12 explosives, tools to make more and 4,500 rounds of ammunition. >> emphasizing the limitations of our law enforcement agencies to just monitor everything that's going on in this country. this is san bernardino. it's 60 miles out. this guy was not on the radar. this is something that's going to get the market's attention in a way that's different from had it not had these potential connections. i say potential because we don't know for sure. >> he wasn't on the radar and he had no known criminal record. the guns were purchased legally as well. coming up, an unfortunate but
1:40 pm
perhaps necessary conference. we're going to talk to a workplace safety expert about protecting yourself and your co-workers in the event of an emergency. stay with us. when a moment turns romantic why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction,
1:41 pm
stop taking cialis and get medical help right away. ask your doctor about cialis and a $200 savings card. ahh... steve, other than making me move stuff, ces. what are you working on? let me show you. okay. our thinkorswim trading platform aggregates allhe options data you need in one place that lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stockxpecting earnings. impressive... what's up, tim? for all the confidence you need. td ameritrade. you got this.
1:42 pm
let's get you up to date on the latest in the mass shooting in san bernardino yesterday. officials holding a news conference a short while ago. police now say the number of people injured has risen to 21. those suspects fired 76 rounds at police in the shootout. the police fired more than 300. 12 pipe bomb devices were found at the house. the officials were looking at in redlands and new jersey sources say syed farook seemed to be in some sort of communications with overseas people of interest in the u.s. in the wake of another shooting we want to take a closer look at
1:43 pm
workplace safety and what corporations need to do to protect their employees and what employees need to do to protect themselves. on set with us is john zamrock lead trainer at awareness consultants in piscataway. he trains law enforcement corporations and civilians for emergencies such as active shootings. john, welcome. good to see you. obviously a tragic event, alas not the first ever its type in a workplace in this country. what is the best advice that you can give to workers who might at some point find themselves in this kind of circumstance? >> well for the office setting, there's three things that we want to keep in mind. three options. one would be to evacuate if you could. the second one would be to lock down in place or to hide the best you could. seek some kind of cover. both concealment and cover, perhaps cover from gunfire, and the last one using common sense
1:44 pm
and would be to engage in possible. >> when you say engage y mean try to take down or try to talk out of action or that kind of thing? >> words or actions, either one depending on the situation. we have an excellent example of flight 93 where the people decided to try to take back control of the aircraft before it crashed. those people are true american heroes. they saved a lot of lives by engaging. >> do you engage only at the point where the other alternatives which is to run or to shelter and barricade yourself have been exhausted? >> that would be true or if you obtain a tactical opportunity. >> uh-huh. when you say try and evacuate, should everyone in a workplace or in a public setting, whether it is a theater, a stadium, a house of worship for that
1:45 pm
matter, should you know what your point of egress ought to be? do you need to know what -- do you need to have a plan? >> that's correct. everybody should have a personal plan, a very simple personal plan and be aware of their surroundings whether it be at home, at the supermarket, at the walmart, at a stadium, at a theater. they should have -- >> what do you do? what do you do? what do you look for? >> perfect example is my wife and i went to new york city to see a holiday show, and we got there about 20 minutes early and we sat and i looked around for, a, where we were sitting and where the lit exit points were, and i told my wife that if something were to occur, that we were going to first try to go to point a and then if that was blocked, point b. and, of course -- >> do you do that routinely? >> i do. >> how important is it to
1:46 pm
silence your phone so that there's no danger, for example, of a shooter or an attacker finding you by locating you because your phone rang? >> well, that's a very important part. i'm not sure that would be the first thing i would think about, but it is important that once the incident occurred and perhaps if you call 911 is to then think about silencing your phone if you are in lockdown. >> i would imagine in a situation where everybody is in panic, everybody is trying to call 911 and so certainly 911 gets flooded with a million calls. should you have a plan in place for example here in the workplace that you know who is going to call 911 and if they're taken out that there's another person in place to call 911? >> communications is very important in a situation like this that we talk to one another and if somebody says i already called 911, we don't need to flood that dispatch zone with continuous calls. if we can make sure that at least somebody called 911 to let them know that we need
1:47 pm
assistance, that would be good enough. >> what do you do once the police arrive? >> once the police arrive, you need to follow their instructions. they may ask the people to lie down face down on the ground. they may ask you to come out in single file. you may get searched coming out of the room. just understand that all these procedures are extremely important for safety of everybody. >> and yet it is quite an unsettling experience to go through just having to be searched by the police alone. so it's good to know that that could happen in advance. have you seen quite an uptick recently, john, in companies calling you and asking to come in and give training sessions, for example, to employees? >> we have. every incident that we have depending on what it is and how much it hits our emotions as americans will spike calls. sandy hook was a big spike in
1:48 pm
calls, and as these incidents occur, we do get spikes and more and more calls. >> one final question that is frightening for me to think about, but how much protection do you gain by barricading yourself in an office? in other words, by putting a desk in front of the door, by hiding underneath a desk? an active shooter situation? does it help you? does it not? >> depends on what you're trying to protect. if you're trying to protect against ammunition, there's very little that little stop rifle rounds. if you're trying to slow down the movement of the shooter, barricading chairs, desks, anything you can throw in a path -- >> slow their access to a room which might save lives but it's not going to probably impede a high velocity rifle round. >> that's true, but understand that the shooter is probably going to take the point of least
1:49 pm
resistance. >> very quickly, from what we know so far and we do not know everything and the police chief has been very clear to say we don't know what the motives are, but a lot of indications are increasingly suggesting it may be a terror-related event as opposed to just a disgruntled worker. in your expert opinion, what do you feel like it might be at this stage? >> i think it's leaning in that direction. i don't believe we have enough information right now to come to a conclusion. i think we need to wait and sit and take the advice of the fbi assistant director and let them do their work and then there's no real reason to come to a conclusion in a hurry. let's get the facts right. >> right. >> john, thank you very much. we appreciate your time and your insight. helpful information. john zamrok. >> thank you for having me. >> let's go to sue herera. >> hi, ty. this concerns an explosion that occurred earlier this morning at an anadarko petroleum plant located in texas. it's by orla, texas.
1:50 pm
it's basically under way -- the fire is still under way at the anadarko plant which is four miles passed the new mexico/texas border. it's bordering on u.s. 285. two minor injuries right now have been reported. here is the statement from an anadarko petroleum spokesperson. the fire occurred at the ramsey natural gas processing plant near orla. of the 200 people on site, they are all accounted for. only two minor injuries reported, and at this point all lines coming in and out of the plant have been isolated. these are the first pictures that we are getting in of that particular explosion. it was a very large explosion, but they have shut down the lines going into and out of that particular plant. the fire is contained in one area of the plant. two minor injuries right outside of orla, texas. the markets are an our lows of the trading session. the nasdaq off 75. the dow off 181 points.
1:51 pm
there's a lot more news coming up when "power lunch" continues after a quick break. (trader vo) i search. i research. i dig. and dig some more. because, for me, the challenge of the search... is almost as exciting as the thrill of the find. (announcer) at scottrade, we share your passion for trading. that's why we rebuilt scottrade elite from the ground up - including a proprietary momentum indicator that makes researching sectors and industries even easier.
1:52 pm
because at scottrade, our passion is to power yours.
1:53 pm
welcome back to "power lunch." i'm tyler mathisen. let's give new hour's power
1:54 pm
points. stocks under pressure this day. the dow down triple digits sitting right now close to or at session lows. health care, energy, consumer discretionary, these are your biggest losers this hour. and oil soaring. crude surging more than 4%. "power lunch" returns in two minutes.
1:55 pm
1:56 pm
1:57 pm
welcome back to "power lunch." i'm mandy drury. let's bring in cnbc contributor ron insana. as the investigation in san bernardino increasingly appears like it might have been a terror-related event, what kind of impact should we expect to see on the economy? >> since 9/11, mandy and tyler, this is a thing we feared the most, there would be random acts in smaller -- seemingly random places that would look like lone wolf activity that would freeze people in place. 9/11 certainly did, but since then we've been talking about what happens if someone goes into a coffee shop, into a local facility and these things begin to accelerate. you get that cocooning effect we had after 9/11 where people simply decide to stay home, avoid public places. so, look, we're going into the holiday shopping season. do you want to walk into a mall? this is the question people will be asking themselves? can i just buy it online. there might not necessarily be a net reduction in sales. there will be a net reduction in traffic. but, you know, by not going to the mall, you also don't go to
1:58 pm
the restaurants. >> that's right. >> there could be a knock on fect. >> i think that's true. i think in the wake of paris, you know, there was a market decline in foot traffic in malls over the thanksgiving holiday. part of that was clearly that all the deals had been spread out so why go that weekend. part of it was that online shopping has picked up, but i think a not insignificant part of it was also that people are hesitant to go out and be found in large public places. what makes this assault in san bernardino, let us assume there are some associations with persons of interest or terrorists, what makes this difficult to fathom, perhaps it's our new york chauvinism or our east coast chauvinism, we often think the main targets are going to be a major metropolitan area, new york, washington, boston, chicago. this was san bernardino, california. >> i lived in southern california. that is 60 minutes or -- >> that's out in the desert.
1:59 pm
>> the inland valley. >> the inland valley. >> inland empire. >> you think about those targets, but it can be a military base in oklahoma. >> when it starts becoming suburban america as opposed to as you say major cities, people are going to be thinking differently about these events now. and it will only take one more. god forbid it should happen, but something additional to this that would really get people to say, listen, where is my upside in taking the family out and going some place where anybody could walk in and the security is relatively lax and, you know, whether it's a movie theater or any other public space. it's the type of thing that would be problematic. >> come on in. we'll invite you in. >> only because -- i'm not going to disagree with what you're saying but the reality is this, the biggest mass killing in the history of america happened at virginia tech. do you know what happened? applications went up. londoners lived with sinn fein for 30 years and random bombings and they still went about their business. i don't know. i can't speak for everybody else out there --
2:00 pm
>> you have to live your life. >> you have to live your life and if you don't and you don't go to the restaurant, then they've won. >> they've won. >> other thing -- >> i certainly wasn't advocating. >> but at the margins i think it's unmistakably true to think more -- >> i know i did over the holidays. movie theaters and things like that. >> melissa? >> i think you have to also dove tail this, ron, i think that's a good point in terms of the markets but here we are sitting at session lows. we have the dollar index sitting at session lows and the euro/dollar pretty much at session highs here. so the question for investors is given the backdrop with what is going on here in the united states, what is my risk/reward also in staying inhis trade long equities in the united states with the s&p just, you know, a few dozen points off the record highs here. so that's sort of also another dynamic to add into this conversation. >> i respectfully, completely fundamentally disagree. i don't think we can equate today's dow drop with san
2:01 pm
bernardino at all, zero. >> i would say part of it. absolutely part of it. >> how? >> i would never say, brian, i wouldn't say for the record that it's because of that nor i did just say that now. but i think that's another factor here. >> you think -- >> when you weigh the risk/reward, they look at val s valuations and they are another reason -- >> when nbc ran the headline and you carried it that this may have been a radicalized individual who happens to be born in the united states but who may have gone off and gotten himself radicalized, it changes the tenor of it. the market moved lower after that headline. early we were responding earlier to disappointments over the european central bank, but this adds an element of uncertainty, i hate to use the word nervousness, whatever, that i think does effect psychology. >> okay. i'll tell you why i say that. i'm not being jerky here. it's just that we know the computers are running the show >>w. hat's not entirely true. >> i have been to rooms where they have -- >> me, too. >> computer driven -- specific words are said and specific
2:02 pm
actions are taken. you know, we don't own equities here at cnbc. i don't own any individual names except for comcast. i'm not selling my 401(k). are you selling any stocks today? >> first of all, i'm not a trader. >> but you know what i mean. >> i don't do that -- >> and can we find any trader, and this is the worst thing i have ever said i think and it goes to your point, ron, can we find anybody out there, forget trader, just american that doesn't think something like this is going to happen again? >> no. >> i would say it's almost a guarantee it's going to happen again. >> so the discounting do shall. >> i think the point -- no, the point that we're making, brian s that at this point in the market where we're taking a look at valuations, taking a very hard look at where we stand in the u.s. equities, there's not a real obvious reason to be in equities right now especially ahead of the fed meeting. it's just another reason to take some risk off the table. that's all i'm saying. i'm not saying this is the reason the markets are going down.
2:03 pm
>> no one said you did. >> it's one thing. it's one sort of thread in the fabric of how investors are taking a look at the markets. >> all right, folks. that will do it for the first hour and two minutes of "power lunch." >> here is brian, melissa, we'll leave you guys to it. >> pick it up. >> thank you for coming. >>. >> thank you very much. let's pick things up with new developments out this hour following the deadly shootings in california in san bernardino. jane wells has been working really around the clock for us and she's there in san bernardino, california, with the latest. jane? >> reporter: hi, brian. the new information, more wounded than we thought, still no motive, and a whole lot of ammunition. police describe two suspects, a husband and a wife, armed to the teeth with two semiautomatic rifles, two semiautomatic handguns, thousands of rounds, 1,600 rounds just in the suv where they died in a shootout with police, even more at the home they shared. the husband, according to the social media picture, his brother-in-law confirms, this is
2:04 pm
u.s.-born syed farook, a public ep plea in the county who was at a holiday party with co-workers, left. police say he returned anywhere from 10 to 30 minutes later with his pakistan-born wife, tashfeen malik. they were wearing factcle gear. police eventually got a lead on where they were living and after the pair was kill, they entered their home carefully. listen. >> the house in redlands that became part of the focus of this investigation yesterday, i will confirm that the search that took place revealed that there were 12 pipe bomb-type devices found in that house or in the garage to that house. there were another 2,000 9 millimeter rounds found at that house. over 2,500 .233 rounds found at that house. and then there were -- 2,500. and there were additional several hundred .22 long rifle rounds that were found there. >> there was obviously a mission here, we know that. >> was this a mission? >> we do not know why.
2:05 pm
we don't know if this was the intended target or if there was something that triggered him to do this immediately. >> reporter: we do not. they are looking at computers and thumb drives and cell phones that the suspects had. police say the original crime scene, 300 people responded in minutes. 14 dead. the number of wounded now at 21 including two police officers. we know at least two of the wounded remain in critical but stable condition, and here is how it sounded yesterday afternoon or really even before noon on the scanner. first at the original crime scene and later during that suv shootout. >> we have at least 20 victims. san bernardino and sheddon. we can see one guy down. one guy in the back of a car. just for the update, we have the suspect vehicle stopped. we go ahead and extract it and stand by and wait for the bear cat. right now we have one down outside the car. one down inside the car. and from what we understand one
2:06 pm
is on the run. >> reporter: now, all four weapons police say were purchased legally. you could see a couple of them outside the suv where the shootout took place. farook bought the two handguns. it's not clear who bought the long guns. while it's believed both shooters were dead, the chief would not say if there are other people they still want to talk to about this, if this was part of something larger. the fbi being very, very careful in its language saying they won't rule terrorism in, they won't rule it out yet. they have to see where the evidence leads. meantime, the shooters were also the parents of a 6-month-old baby girl, and the female, the mother, tashfeen malik, even posted a baby registry a few months ago back in may. no indication of where the baby is right now, but police say farook's family is being interviewed, is cooperating. later this afternoon we will start to get the names of the 14 dead victims. it has been a long process to extract them from the shooting
2:07 pm
site first of all because the suspects left three pipe bombs strapped together to be controlled by a remote control car remote, and that did not happen. also, they believe one of the gunshots shot out the sprinkler system in the room flooding it. they had to clear out the flooding. they had to neutralize the pipe bomb and only then early this morning could they begin to extract the victims, identify them, and notify next of kin. guys, back to you. >> jane wells in san bernardino. thank you very much. obviously another difficult day for america, but the markets move on and so so shall we. let ution move on to probably the biggest financial story of the year and that is oil. and there was a huge opec meeting tomorrow and the big question from that meeting, will opec come together and cut production to try to raise prices? jim burkhart is head of oil research at ihs and he joins us now. jim, you do not believe opec will come together and cut production. how come? >> it's very difficult to imagine opec cutting because if
2:08 pm
opec cuts, who is going to cut? theaudis would cut only if they have other partners who would actually make a cut. other opec members but also non-opec members such as russia. iran said they will increase production at all costs. iraq does not plan to cut production. russia is not going to cut production. >> w why why the saudis cut production? >> try to take us into that room in austria. you will have other nations that will start to get upset with saudi arabia but is saudi arabia's position in your mind their cost of production is so low that, yeah, they'd rather have $75 but they're still wildly profitable at least there a fundamental drilling and production basis, forget the social programs, at $41? >> right. certainly anybody selling oil would like to have a higher price including the saudis, including the folks in west texas, but what happened when prices were so high for so long above $100, that incentivized a
2:09 pm
lot of high cost oil that led to this price collapse. who should cut? the high cost sources or lower cost sources in the lower '80s, the saudis cut and cut and cut. do you know how long it took for them to recapture that market share? 25 years. they're not about to go back and cut and have high cost producers around the world take that share. >> jim burkhart, ish energy. jim, bassey day. thank you for joining us. >> check out the big moves on the currency market. the euro popping after the ecb cut interest rates on deposits and mario draghi said they could make more moves later if needed. the dollar sinking following those comments. fed chair janet yellen telling lawmakers on capitol hill that the fed was ready to move on interest rates. let's breck it all down with allen ruskin at deutsche bank. great to speak to you. >> nice to speak to you.
2:10 pm
>> we have already seen a tremendous dollar run in anticipation of this unleashing of fed rate hikes to come. are we at the end of the dollar rally at this point? have we priced that all in and with draghi essentially saying what he said today, have we seen the dollar rally end? >> i don't think it's the end of the big dollar rally. it might be a stalling of the dollar rally for 2015 but i think 2016 will see the dollar continuing. as you alluded to the fed story is key but if you look at what the market is pricing in, it's saying u.s. rates will move in favor of the u.s. dollar against the euro rates for effectively the next five years. i think that's going to happen. for the next couple years the dollar still will be very strong. >> what is behind the euro/dollar rally. it's up more than 3% which is a tremendous move for the currency markets. is that short covering? >> a lot of it. i think, you know, draghi effectively overpromised. he promised a huge amount of sugar. we did get an easing.
2:11 pm
i think people are forgetting that, but nonetheless, he didn't deliver what the market was pricing in and now we really are resting on the idea that the federal reserv will have to obviously tighten in the middle of december and resting in particular on some strong data tomorrow to get the dollar bulls back into shape. >> so what's going to be longer term trend for 2016? you mentioned the stall in 2015 for the dollar. for 2016, where do you expect the euro/dollar cross to be? >> i think it should certainly head into the low 90s. break parity, probably in the first half of the year. i'm working on the proviso that the federal reserve tightens in december and tightens again in march and probably again in june. with three tightenings, that will take the u.s. dollar into the realms of high yielder in the g-10 world bizarrely ruff. >> we're going to leave it there. thank you for your time. we want to keep you abreast of what's going on in the markets. the dow as you see is down by
2:12 pm
217 points. good for a loss of 1.25%. the s&p 500 is down by 1.3% at this hour. also just off of session lows here. >> all right. understanding the dollar's move seems pretty easy. what is a little more confusing is why treasury yields are still just at 2.3% on the ten-year. brian whalen is a fixed income manager for tcw. we have a federal reserve that's expected by many, not all, to raise rates on december 16th. yeah, we've come up off the lows, but 2.33% on the ten-year still near historic lows. are you surprised the ten-year yield hasn't moved more? >> not really. i think if you look at the two-year yield that's more correlated to what the federal reserve does. that's moved up subsntially, 30 basis points over the last few months in anticipation and ricing what the fed is most likely going to do in december, a few weeks from now. if you look at the long end of the curve, the 10 year yield or
2:13 pm
30 year yield, that's more impacted by market expectations. markets are questioning the long-term growth potential, effectively forecasting in if you look at real yields in the 30-year space of about 1.2%, expectations are low. and then also the fed does lift off in december, they're starting a hiking phase, and so, you know, that would kind of bolster the hawks thinking that the fed will tamp down any type of inflation that picks up next year and that's good for the long end of the curve. >> let me ask you a more difficult question because i don't know if you heard it right at the top of the show, sort of the end of the previous hour, i made a comment where i didn't think the stock market was necessarily down today just because of what happened in san bernardino because everybody i talked to in the market says, sadly, we price in what's expected and everyone knows the world is a far more dangerous place than maybe it was a few years ago. i know you're a bond guy, but you're a fund manager. do you have to factor in things
2:14 pm
like this now into your thinking, into your models, into your planning? >> yeah. you know, these are human tragedies and to be honest with you, they're impossible to invest around or at least construct your portfolio around but to your point, you know, we live in a different world than it was, you know, even 20, even 10 years ago, and so i think from a broad perspective, i think we have to think you expect higher risk premiums. you need to get paid a little more to take risk for whatever the uncertainties might be, whether it's a tragic event like we just saw in san bernardino or what we saw in paris a few weeks ago or natural disasters. they occur when no one is expecting them. that comes into broader risk premiums but it's impossible to invest or construct a portfolio around specific events or expectations. >> it's always difficult on a day like today on a financial news network when you're trying -- you're talking about this terrible human tragedy and you're thinking, you know, okay,
2:15 pm
but the reality of the world is the market goes on and yet we -- to your point, peoe who manage money for a living now have to look at things a little bit differently. i think you said it well which is the risk premium has got to be a little bit higher, right? >> yeah. i mean, it has to be higher for this event or for this reason that we're talking about. it has to be higher because liquidity in the market has changed. i'm sure you've done and we've all read stories in the last year and i have seen a few hit the wires this week about reductions in head count at the some of the big banks and them stepping out from providing liquidity to the markets. when you tie these topics together, when you get unexpected events like we just saw in a market that has less liquidity than it had lets say prior to the implementation of basel or dodd/frank, you're going to get bigger moves and you have to factor that in when you construct a portfolio and
2:16 pm
manage a fund. >> brian whalen of tcw group. thank you for joining us on a difficult day. we do appreciate it. >> thank you. much more ahead on "power lunch." again, we are watching these markets head down. the dow industrial average down 209 points right now. you've got merck, travelers group, and united health leading the declines. ge and walmart the world's biggest retailer in the green. a lot of talk about whether people are going to be shopping and the world's biggest retailer is the best performer in the dow. let's look at oil and gold. barely seen a move in gold. up 7 bucks an ounce. only 0.6%. crude oil up a little bit as well. we'll head live to the floor of the new york stock exchange when "power lunch" returns.
2:17 pm
2:18 pm
2:19 pm
dow is down more than 200 points and the s&p is down 26. right now let's go to bob pisani at the new york stock exchange. energy stocks are tremendously weak in the session even though oil is rallying. >> very unusual situation. we want to show you first the s&p. we're just off of the lows for the day, and there was a little bit of a hope earlier in the day, melissa is right, that the weak dollar, strong euro, would be a help to commodity stocks, and normally that would be the case but it's not really turning out that way. you see we're just off the lows. let me show you what melissa was talking about. you have this very unusual situation where oil has rallied, in fact twice today. earlier on it rallied on the draghi comments and then in the middle of the day had a second
2:20 pm
leg up. 4%, a nice move up in crude and energy stocks are sitting at the lows of the day. this is very unusual to see this kind of dichotomdichotomy. what's happening is the equity market seems to believe that the rise in crude oil today is a head fake, that it's not going to last. that's at least the message of the equity market right now. elsewhere on a separate note, another market leader this year is showing some signs of weakness, so we're seeing health care down across the board and it really doesn't matter whether you're looking at stuff that's biotechy like celgene or even hmos and other style stocks in that group like aetna and universal health care and some of the hospitals like tenet health care are also to the downside. remember, melissa, the last great trade that was out there was stay long the dollar and stay short the euro. that was one of the last crowded trades that are out there, and now that's kind of gone, so that's another thing that's not working for the trading community this year. and biotech was another one.
2:21 pm
that's generally been working fairly well. it's had some ups and downs and even today you can see that trade also not working. i guess what i'm saying is a lot of trades that are out there, long trades, are not working very well. this long dollar short the euro is one of the last ones that were out there is now everybody, brian, everybody has had a crummy year as a result of the fact that none of the long trades have been working very well. >> let's get back into the news of the day outside of the markets and the markets together which is how much of the folks, the men and women on the floor, are talking about san bernardino not from a humanitarian perspective, everybody cares, but -- especially in new york city, but from a markets perspective? when i look at a dow where the biggest retailer in america is the best performing stock but i keep hearing concerns that no one is going to shop again, there's a disconnect. there's a disconnect. >> yeah. it is a very -- it's very difficult, as you know, because it's a nebulous thing. it's very hard to figure out the
2:22 pm
impact, but i wonder if you could put up oil -- jason, put up oil for a minute intraday. at 12:35, just as the press conference was going on, brian, i'm going to speak to your issue here, with he saw a notable spike up in oil. it went up about 45 cents. you can put up an intraday, i'll show what you i'm talking about. everybody said, wow, what happened? that's a lot in literally one minute. that's when the press conference was happening and they were talking about people being radicalized, that individual being radicalized. maybe it's a coincidence but some people thought perhaps there is a concern there may be a more aggressive stance overseas and it could cause issues. i think it quantified itself a little bit in the move we saw in oil. >> if you look at a two-day chart in the dow, we saw a move down starting 1:29 eastern time which is when the news started
2:23 pm
to come out. not saying it isn't a part of the story but the dow was lower a month ago. we just need to be careful saying stocks are getting crushed because of this. it sucks but you sort of factor this in in a way. i don't know how else to say it. there's no way to say it that's going to come out well. >> i think you said it right. we cannot quantify. that's what makes you and i nervous. we're used to quantifying things, clear headline, clear things moving. s in not so clear, but look at oil at 12:35. it moved and there was no other real movement -- >> i might be being a pollyanna because it's painful to deal with. >> i don't know, brian. i haven't heard anybody so far on this network say stocks are down because of, but it is a reason when investors are looking at the market -- >> maybe. >> where we are in terms of 11
2:24 pm
days in front of the fed meeting. do you put risk on now in this environment? and that's the question investors are asking and the shootings are in that sort of pastiche of things they're looking at. it may not be a big one, it may not be the main one at all. >> and remember, too, i really think it's important to go back to the dollar thing, that was a crowded trade and it was something that was very popular, and it was one of the last things that were working that suddenly didn't work. so now a lot of stuff that people made -- profits they made evaporated quickly. biotech was another one. there were generally good profits -- >> there may be some locking of the profits. >> i want to be very clear what i'm saying guys. i'm not saying that. if i have said that, i misspoke. i'm just talking about the markets. we all talk to people in the financial markets all day long, every single day, that's our job.
2:25 pm
what i'm trying to say if you're investing money either as mom and pop or a hedge fund manager today, i have to factor in it is a dangerous, sad world, and that's the environment you're going to be buying into. and that's the only point i'm trying to make. >> okay. we have to leave it there, guys. thanks so much, bob pisani from the floor of new york sfotock exchange. we are at session lows on the s&p 500. we're down 30 points, down almost 1.5%. shares of the world's biggest medical device maker haier. and microsoft down 2%. assent solar down 16. stick with us. "power lunch" will be right back.
2:26 pm
2:27 pm
2:28 pm
hello, everyone. i'm sue herera. here is your cnbc news update this hour. secretary of state john kerry and russian foreign minister sergei lavrov meeting today in belgrade. on the agenda, the migrant crisis in europe, the war in syria, and the threat from isis. a federal jury in west virginia convicting ex massie energy ceo don blankenship of
2:29 pm
conspiring to willfully ignore mind safety standards. he was acquitted of all other charges. the misdemeanor charge carries up to one year in prison. police tore down an encampment outside a minneapolis precinct where demonstrators have gathered for two weeks to protest the fatal shooting of a black man by police. and a south african appeals court has convicted oscar pistorius of murder overturning a lower court's conviction of the lesser charge of manslaughter where he was accused of shooting his girlfriend to death in 2013. it said the trial court should now impose the sentence. that is the cnbc news update this hour. brian, back to you. >> sue, thank you very much. let's go right now to u.s. -- we're going to go to jackie deangelis at the nymex. we are waiting on u.s. attorney general loretta lynch to make some comments about san
2:30 pm
bernardino, so when that happens we'll jump out, but jackie, give us the oil trade today, please pop. >> got it. it looks like we'll close just around $41 a barrel, brian. this is about a 3% move higher. dollar, dollar, dollar. the dollar index seeing a two-handle drop today and that is what's supporting oil prices here. also a little support coming as we go into that opec meeting tomorrow. you never know exactly what they're going to do although we are not expecting to see a cut but we did come off the session highs, $41.78 was the high for the session. brian? >> all right. jackie deangelis, $41.78, we have that big opec meeting tomorrow. it will be a busy one around the oil trade and i'll be happy to be not here. >> yeah. all right. let's turn to medtronic right now. it's a mover today after reporting a 62% jump in quarterly revenues for an earnings report. let's get to cnbc's meg terrell for her live interview with the medtronics ceo. meg? >> thanks, melissa. and thank you omar for joining us.
2:31 pm
omar, i'm not really hearing you and if melissa and brian are then i would likehem to ask you some questions because i'm not getting you in my ear right now. >> omar, can you hear me? it's melissa in new york? >> yes, i can. >> hi, omar. i think -- >> meg, you have it? >> meg, how about this -- can you -- if you can hear -- you can ask me or melissa a question and we will give that to omar. because they're your questions. >> i think i can hear omar now. thank you, guys. omar, thank you for joining us. i want to talk with you a little bit about pricing pressure in your industry. we're talking so much about that with drug company ceos. how is that affecting medical devices? >> well, actually we're in a cycle of a lot of therapy innovation and the value we're creating today is getting the price that we think is fair. so in general the cycle of new innovation and participating in
2:32 pm
really brand new markets such as transcatheter valves as the overall price pretty stable. >> how is the consolidation among the payers affecting how you look at your pricing power in the future? >> well, listen, when we look at pricing, we really look at the value that we create, and we spent $2 billion a year in engineering and technology and that is really geared around creating value from our devices from which one can eventually get financial benefits. if we stay focused on that and demonstrate that value independent of what the organization looks like, we can get the pricing that we deserve. now, the more we move to a value-based health care world where they, in fact, value the technology we provide in a quantitative way i think actually that's the right and fair pricing that we can get for our products. so independent of the
2:33 pm
consultation, if that helps us move more to a value-based health care world that's better for us. >> your stock is doing quite well especially after the acquisition of co-vidian. in march it hit an all-time high. republicans want to repeal the medical device tax which is 2.3% on manufacturers or importers of the device. should that happen, how much better could things get for your company if you were no longer required to pay that tax? >> well, put it this way, the medical device tax costs us something like $200 million a year in tax. now, if that were not to be paid, we would be channeling that kind of money into areas that we can grow our business, technology would be a primary area that we would go after because we find that in this space there's still a lot of room for innovation and more capacity to invest in that area
2:34 pm
would drive future growth, and so we think we can make a real difference in the health care world in providing better therapies for patients by rechanneling that money towards innovation directly as opposed to the tax if that were to come to pass. >> okay. we got to leave it there. thanks so much for joining us. wee apprecia we appreciate it. >> let's get another check on these markets as we have seen selling pretty much throughout the day and accelerated selling throughout the day. the dow is down 270 points, that's 1.5%. the s&p down 1.6. the tech-heavy nasdaq taking it even worse. that index down more than 2%. we'll keep you up to date on the markets and all the breaking developments out of san bernardino, california, when cnbc returns right after this.
2:35 pm
2:36 pm
opinions. there's no shortage in this world. who do you trust? whose analysis is accurate?
2:37 pm
how do you make sense of it all? a simple, unbiased stock score consolidated from the opinions of independent analysts... is that too much to ask? nope. equity summary score, powered by starmine, will help you execute your ideas with speed and conviction. and it's only on open an account and find more of the expertise you need to be a better investor. welcome back p.m. i'm eamon javers in washington where attorney general loretta lynch is speaking now at the department of justice with additional u.s. law enforcement officials. she's announcing the unsealing of a new 92-count superseding
2:38 pm
indictment involving fifa corruption around the world. she's saying they're bringing charges against 16 new defendants here in this case including the presidents of two very prestigious regional soccer bodies, concacaf and conanbal. according to swiss officials, the two officials who were arrested this morning in predawn raids in zurich, switzerland, are the president of concacaf and juan angel naputs the president of the south american football confederation. loretta lynch also saying eight additional people have agreed to plead guilty and saying ultimately that two generations of fifa officials have conspired to corrupt global soccer. back to you. >> eamon javers, thank you very much. let's get back to the markets now and it is time for our daily segment, "trading nation." today lets take a look at gold.
2:39 pm
today barely higher, despite the big drop in the dollar. andrew burkly is head of institutional and -- andrew, are you surprised that gold is not getting more of a bid today? >> hey, brian. not really. i think when you look at the dollar and what's going on, it's really a positioning adjustment. there's such a big short position that really anything the ecb did this morning was going to be a bit of a disappointment. you're seeing that reflected in the currency pair. as we talked about in the past, really for gold you need signs of inflation, right? it's got to be an inflation hedge. and still the general macro economic data is pretty soft out there and most of the leading indicators are still pretty soft. with oil prices down and the economic data sluggish, inflation expectations are not moving highariened the need to own gold -- >> but you have a day with the vix, the volatility measure is up, andrew, and obviously the events of california, that also
2:40 pm
factors into gold, no? but it's still not up much. >> yeah. on a short-term basis, sure, you're going to have those correlated moves but i think people have gotten burned by that quite a few times and the trend in gold just continues to go down and down as the trend in inflation continues to go down and down as well. >> all right. craig johnson, let's look at a chart of gold. obviously it's been very weak for some time. little blips here and there but any sign of a real turn? >> brian, when you look at the chart of gold, the trend is clearly not your friend on this particular chart. you've been making lower lows and lower highs since either the high of 2011 or the intermediate high you made in 2012. you're below your 40-week moving average and you're getting very close to taking out some pretty important new support levels at around the 1050ish level. i look at this particular chart and i look at the fact there is no reaction meaning gold going up even though you've got some strength in the dollar today. it suggests to me you've got some short-term adjustments going on inside the currency markets and that there is not a
2:41 pm
longer-term disruption that is happening because if it was, gold would be up and you just got some short-term trading activities. i still think primary trend is lower for gold. i think your next big support is $900. i remind the gold bugs that the average price of gold over the last 50 years has been just over $500. >> wow, no support technically until $900. >> $900. it's been our call since about $1,500 that we were going to go to $1,050. >> it's like reminding the oil bugs that the price of oil over the last 25 years is 40 bucks, it's not 100 bucks. for more "trading nation" head to our website, let's take another check on stocks. we're sitting at session lows on the nasdaq as well as the s&p 500. the nasdaq we should note is down by 2%.
2:42 pm
it is feeling the worst of the brunt of the sell-off here in the markets. take a look at the ibb. two of the worst performing stocks are biotech stocks. the ibb is down more than 4%. we'll keep track of this market sell-off for you and we'll be right back. stay tuned.
2:43 pm
2:44 pm
2:45 pm
we are just off of the session lows. in fact, the dow briefly fell 300 points. we are above that level right now. we're down 285, down 1.6%. the s&p 500 and this is notable is now negative for the year. it's down 35 points now again just 2 points off session lows, 1.7%. perhaps no coincidence we're seeing the interday session low on the dollar index. most of that is dollar/euro and that's down by 2.25%, 9775 me.
2:46 pm
meantime, lets get back to jane wells in san bernardino, california. >> we're starting to get the names of the victim, one is michael wetzel. he was the father of six. yesterday morning in that same complex was timmy hilliard who is a social worker. you took some amazing video. what happened? >> turn your mic on. >> i'm sorry. timmy, what happened? >> i actually got word of active shooter after the fact that the event happened in building three auditorium a and b. i had a text sent from a colleague stating there's an active shooter on grounds. at that time i was thinking maybe it was something small, maybe somebody walking around with a gun, something not happening. trying to just minimize it as much as possible figuring we're social services at san bernardino, something not as bad
2:47 pm
as it may be. by that time i actually heard my colleagues going -- running around, crying, screaming, trampling all over the place. whichant in the hallways and i saw them reacting the way they had and i was very curious what happened so i asked what's going on and they're crying and screaming, gunshots, we heard gunshots. there's people dead. things are happening. they're going to kill us. people are shooting and i'm like, okay, take a breath. what's going on? at that time i realized that the workers were actually going to barricade themselves within the conference room with the chairs and tables against that door and at that time i wasn't are eread willing to be barricaded. my instincts were to assist as much as possible to see how many are down, to see how many active shooters there are -- >> reporter: but you were also taking video? >> correct, at that time that's when i went down to one of the offices to get optimal view of the scenario. when i first got there, i saw two deceased, a male and a
2:48 pm
female. one male on a bench and one female face down on the concrete -- >> reporter: outside. >> outside of building three in the back of auditorium a and b. it looked like the female was trying to flee or gunned down as she ran out of the facility. i recorded video as much as possible of s.w.a.t. teams entering the facility, everybody going in and by that time i started seeing the teams pull bodies out, arms, legs, chairs, one, two, three, four. stacked up to 13 and i stopped filming, i stopped counting. by that time i realized ths bigger than i thought and not as bad as i wanted it to be. >> reporter: thank god you got out thereof. did you see a dark suv? >> i didn't at that time. when i started filming it was probably 10 or 15 minutes after the scenario occurred and then i was filming for 15 or 20 minutes into when i was spotted by the police up on the floor.
2:49 pm
guns were drawn to my direction and i decided to stop videotaping, get back to my colleagues and be safe. >> timmy hilliard, thank you very much. glad you got out of there. >> thank you. >> jane wells, thank you very much. clint van zandt is a former fbi profiler, also a contributor to msnbc. clint, we listened to the police department earlier today and this is what came out, that when the suspects' vehicle was found it contained 1,400 rounds of .223 ammunition. the average clip for an ar-15 holds 30 rounds. that's 45 clips of ammunition on their person, more back at their home. what can we discern from their intentions? >> well, number one, we know they could have killed a lot more people than they did. you know, one of the things we learned the last couple days is that the local police department had a s.w.a.t. team exercise just a couple blocks away, so the police response was really quick. now, they didn't catch them one way or the other in the
2:50 pm
building, but these individuals, the two shooters, this husband/wife team, with the two ar-15 like weapons, the two 9 millimeters and literally thousands of rounds of ammunition as well as 12 pipe bombs that were found back in their house, why they didn't take those, thank god, they could have done so much more damage than the terrible atrocities we know they already committed. >> and given the amount of ammunition that we just referenced, it is clear that these suspects were out for a prolonged and perhaps multiple series of fire fights, is it not? >> well, i think that could have been the case. they may have surprised themselves that they were actually able to escape from that facility, and then, you know, we've got about a three or four-hour period where they may have gone back to their residence or been somewhere else before they got back in the vehicle, drove out of the driveway, the police started that pursuit and then you had this running gun battle where the wife at first was shooting out the back window of the
2:51 pm
vehicle and then when the police finally pulled them over the male jumped out and of course that fire fight was over with after hundreds of rounds by police were poured into it to literally stop them in their tracks. >> clint van zandt, thank you very much for joining us again. >> thank you. >> melissa. all right. we have another check on the markets here. we are just off of session lows. the s&p 500 is down by 1.6%, the dow escaping that 300 point down move, but it is still down by about 267 right now. we're keeping an eye on the markets for you as we head to break. stay tuned. when a moment spontaneously turns romantic, why pause to take a pill? and why stop what you're doing to find a bathroom? cialis for daily use, is the only daily tablet approved to treat erectile dysfunction so you can be ready anytime the moment is right. plus cialis treats the frustrating urinary symptoms
2:52 pm
of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use. insurance coverage has expanded nationally and you may now be covered. contact your health plan for the latest information. hand apparently, they also lovee stickers. g. what's up with these things, victor? we decided to give ourselves stickers for each feature we release. we read about 10,000 suggestions a week to create features that as traders we'd want to use, like social signals, a tool that uses social media to help with researc
2:53 pm
10,000 suggestions. who reads all those? he does. for all the confidence you need. td ameritrade. you got this.
2:54 pm
it is a sea of red out there in the u.s. equity markets, stocks are sliding as we head into the final hear of trade but there are some green out there, inverse etfs are up, sh the ddg is double short the dow and dug is short oil and gas. over on the nasdaq dsx short nasdaq, these are volatile etfs so be careful. "power lunch" will be right back.
2:55 pm
at ally bank no branches equals great rates. it's a fact. kind of like playing the boss equals the boss wins. wow!
2:56 pm
every insurance policy has a number. but not every insurance company understands the life behind it. for those who've served and the families who've supported them, we offer our best service in return. ♪ us. we know what it means to serve. get an insurance quote and see why 92% of our members plan to stay for life. ♪
2:57 pm
got a lot of volatility today in the u.s. equity markets as well as in the currency markets. the dollar index session lows down 2.3%. is the dollar rally over now. we have on "fast money" tonight the global money investor, he was on the right side of the commodity trade since we started talking to him about a year ago, we will get his take tonight.
2:58 pm
>> and i've said before, melissa, i've known him for a of years he is conestly i think one of the smartest guys. >> a macro investor. >> ex goldman, ex glg. all right. let's take a look at some of the winners, there's not many winners to look at. dom chew joining us now. >> there's two stocks in the entire dow, it's walmart and general electric right now that are up fractionally, three quarts of 1%. wall net is up one-tenth of 1%. overall very much a down side day. we're 50 points or plus off of the lows of the session so far today so at least we're maybe -- it's not stability but it's still better than we were before. >> i point this had out earlier, again, you don't know what's what in the market. there's so many ways things are happening but the fact that many of the congratulations stocks, walmart is the best performing dow stock, costco is up, they had dean numbers, but a bunch of
2:59 pm
the brick or mortal retail stocks are doing okay today. >> you bring up kroger and costco, both of those they are just not positive, they're record highs today. they hit record highs in trading today. >> can we throw up the s&p 500 maps. >> take a look at the sectors. take a look at this. there's only one row of green that's about 50 stocks up there, right, that are in the green so far in the s&p 500. and then broadly speaking, i mean, sectorwise, let's take a look at the sector heat map, that's an interest story as well. we do know there has been some weakness and we know where most of it has been coming from, it's been energy, down 1.75%. healthcare, biotechnology plays a part in that healthcare story as well. >> i think you hit it on the head. you hit it right on the nail, dominic. in terms of the healthcare you can see the declines in healthcare because the biotechs are about 20% of the xlv, you are a seeing the impacts, you're not seeing it on the xlk and
3:00 pm
you're seeing it on the flask da. knowing where things are stationed or domiciled really impacting how you view the sectors. >> hey, dom, thank you, buddy. >> always a pleasure. >> melissa, we will see you at 9:00 on "fast money." >> "closing bell" starts right now. hi, everybody, welcome to the "closing bell" i'm kelly evans at the new york stock exchange. >> and i'm bill griffeth. a big sell off for stocks, in fact, a lot of moving pieces in in market, moving lower right now after the european central bank unveiled lesseesing than had been anticipated this morning and after signs of weakness on the u.s. economic front as well. this all amid the tearism fears related to the shooting in san bernardino yesterday. >> take a look at the dollar index, if you're looking at a flight to safety that is not what you're seeing. the dollar is down at 97 and change on the dollar index, with he remember when it


info Stream Only

Uploaded by TV Archive on